The CEO of STMicroelectronics announced on Wednesday that it expects 5000 employees to resign in the next three years, including 2800 layoffs announced earlier this year.

Jean Marc Chery announced at an event hosted by BNP Paribas in Paris that approximately 2000 employees will leave the French Italian chip manufacturer due to natural attrition, bringing the total number of voluntary resignations to 5000.

The CEO added that discussions with stakeholders and authorities on implementing cost cutting plans are progressing smoothly.

He was clearly referring to Italy, "he said," I do think that the situation in a certain country is worse. And it's very likely, well, it will slightly slow down our implementation speed.

In the past few months, due to the sustained downturn faced by STMicroelectronics in its main market, the Italian government has expressed dissatisfaction with the company's CEO and accused him of insider trading. STMicroelectronics denies these allegations.

The Italian and French governments hold 27.5% of the shares of STMicroelectronics through a holding company, which has 50000 employees worldwide.

Last November, STMicroelectronics detailed its cost cutting plan, which is expected to save hundreds of millions of dollars by 2027, including layoffs and early retirement.

In April of this year, STMicroelectronics announced that due to voluntary resignation, the company would cut 1000 jobs in France, compared to the originally planned 2800 non natural attrition positions, while negotiations with Italy are still ongoing.

Reuters reported in the same month that Italy demanded to limit the number of layoffs to no more than 1000.

The Italian labor union stated on Wednesday that the company's announcement to lay off 1200 employees at its Agrat factory in northern Lombardy is "unacceptable" and requested an emergency meeting with the Italian government to discuss the situation.

Chery also stated on Wednesday that it sees signs of market recovery this year. The company's stock price closed up 11.1% to 24.94 euros per share, marking the largest daily increase since the end of March 2020.

Meanwhile, Italian Industry Minister Adolf Urso denied rumors on Wednesday that Italy and France are considering splitting chip manufacturer STMicroelectronics. He called these reports' baseless'.

Urso made the above remarks to the media after attending a cabinet meeting in Rome. His statement was a response to a report in the News that suggested the government had commissioned research institutions to assess the risks and benefits of this move.